by Jeffrey Dorfman, Real Clear Markets
President Obama is supposed to send his budget proposal to Congress today and the word is that he wants an increase of $74 billion in discretionary spending above the sequester level that is the current legal baseline for spending. This would be a seven percent increase above current levels. While seven percent sounds like a very large increase, the $74 billion might not sound all that large. However, it is only the tip of the iceberg.
Based on the most recent projections from the Congressional Budget Office, mandatory spending is expected to increase by $220 billion in the next fiscal year and net interest expenses are predicted to rise by $49 billion. Thus, what President Obama is really proposing is a spending increase of $343 billion. That would be an increase of over 9 percent above this year’s levels and would result in the first $4 trillion budget in American history. Read the entire story.